Australia’s booming warehouse funding market eyes $10b

When IFM Investors first ventured into the territory of the big banks by directly financing a sprawling sector of specialist financiers, it never imagined that 15 years later it would be the biggest player in the space.

Now, IFM and a dozen expert debt funds provide crucial capital to fintechs, farms and even mortgage providers as the large banks have vacated the area.

In doing so, they’re forging a new frontier in lending markets that is directing credit to more households and some of Australia’s most innovative businesses.

Today, IFM sits on $1.5 billion in so-called mezzanine debt warehouse lending, which is a line of credit given to businesses that regulated lenders such as the major banks won’t or can’t touch.

The list keeps on growing. Two Asian private equity houses have stepped in, and other investors are considering a similar move.

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